Cumulative return on $1,000 invested in google vs apple I

To put your new ability to do cumulative return calculations to practical use, let's compare how much $1,000 would be worth if invested in Google ('GOOG') or Apple ('AAPL') in 2010.

This exercise is part of the course

Manipulating Time Series Data in Python

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Exercise instructions

We have already imported pandas as pd, and matplotlib.pyplot as plt. We have also loaded Google and Apple stock prices in a variable data.

Define a variable investment with the value 1000.
Calculate returns by applying .pct_change() to data.
Add 1 to returns and assign this to returns_plus_one, then apply .cumprod() to returns_plus_one and assign the result to cumulative_return.
Multiply cumulative_return by investment, and plot the result.

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

# Define your investment
investment = ____

# Calculate the daily returns here
returns = ____

# Calculate the cumulative returns here
returns_plus_one = ____
cumulative_return = ____

# Calculate and plot the investment return here

Edit and Run Code